Do Board Evaluations Measure Board Effectiveness?

Abstract

The purpose of this study is to assess to what extent implemented board evaluation processes in Norwegian listed companies have contributed to board effectiveness. Board effectiveness has been measured by using three levels of accountability, namely, board performance, conformance to content, and conformance to context. Multiple case studies were performed in nine large listed companies using the board evaluation process as the unit of analysis. The characteristics of the implemented board evaluation process were compared and contrasted with the characteristics of the board evaluation process identified in the literature. From a value creation perspective, the implemented board evaluations appeared to represent value creation for the board members rather than measuring board effectiveness.

Additional information

Notes on contributors

Janicke Rasmussen

Janicke Rasmussen is an associate professor at the BI Norwegian School of Business, Department of Accounting—Auditing and Law, Nydalsveien 37, 0484 Oslo, Norway; tel. [phone]; fax. [phone]; e-mail: [email protected].